
Humanity Protocol suffered a major security breach when attackers accessed private keys linked to a foundation member, resulting in losses of about $32 million. The exploit led to aggressive selling of the H token, which dropped over 80% from above $0.70 to around $0.12 due to overwhelming sell pressure and liquidity shock. The breach was due to compromised access rather than a smart contract flaw, but it raised concerns about governance and transparency. The project is now focused on damage control, urging users to avoid certain services while working to restore confidence and liquidity in the market.